Dive Temporary:
- Limestone College might have the “monetary lifeline” it must keep away from shutting down and preserve its in-person programs and operations, its board of trustees mentioned Tuesday. The announcement didn’t disclose particulars on the funding supply.
- The personal Christian establishment, in South Carolina, signaled final week it may very well be compelled to shut or flip to online-only operations with out a direct money injection. The board mentioned it has tabled these discussions for now and plans to reconvene no later than April 29.
- Nevertheless, the 179-year-old college will proceed as if it will likely be online-only after the semester ends, Limestone President Nathan Copeland mentioned in a press release. “I remorse the uncertainty of the state of affairs, however we should be exceptionally cautious,” he added.
Dive Perception:
In a press release, board Chair Randall Richardson was frank about simply how deep Limestone’s monetary troubles run.
“Final week, we have been on the brink of a attainable closure or transition to online-only courses,” Richardson mentioned. “Now, we’re pausing that dialogue so we will wait on extra details about a possible monetary lifeline.”
Officers provided no particulars on the financing, saying solely that “a attainable funding supply has surfaced” that would mitigate the college’s present disaster. A college spokesperson declined Wednesday to share extra details about the funding supply.
Beforehand, officers mentioned the college would want a $6 million emergency fund to stave off closure and hold its bodily campus and actions working.
Within the college’s announcement Tuesday, it mentioned the proposed money infusion would “stabilize operations and provides the college the chance to pursue long-term options that protect its on-campus id.”
Richardson mentioned the board was “cautiously optimistic about the way forward for Limestone,” however added a hedge: “We wish to emphasize, that is only a risk on the present time.”
Limestone attributed its monetary woes partially to falling enrollment. Between 2018 and 2023, its fall headcount dropped 27% to 1,782 college students, per federal knowledge. The college mentioned Tuesday that enrollment now stands at about 1,600 college students.
Excessive prices have additionally added strain. The college has confronted persistent funds deficits — $9.2 million in fiscal 2024, following an $11.4 million hole in 2023, in response to its newest financials.
Limestone has tapped its endowment to fund its operations amid the monetary pressure. Between fiscal years 2023 and 2024, Limestone’s web belongings declined by greater than $12 million, to $61 million, because the college ramped spending from its endowment.
In its newest monetary assertion, the college’s auditors issued a “going concern” warning, indicating they discovered “substantial doubt” about Limestone’s means to proceed working over the following 12 months.
For now, Limestone’s unsure destiny stays a predicament for officers, staff and college students alike as they attempt to plan for upcoming semesters — a problem which the college’s leaders acknowledged.
“We are going to replace everybody as quickly as we all know extra,” Richardson mentioned. “Please be affected person and proceed to hope for a viable answer to save lots of this historic college.”